Major Industries: IT Services, Textiles, Automobiles, Oil & Gas, Pharmaceuticals
The economic history of India can be summarized into three main phases: Pre-Colonial, Colonial and Post-Colonial. In pre-colonial times, it was a well-developed economy that was self-sufficient and thriving. However, colonization led to the depletion of resources by the British and brought about tougher economic conditions. Finally, after independence, the rebuilding process began, which carries on to this day. According to Goldman Sachs, India will be the third largest economy in the world by 2035, just behind China and the United States.
Stability of Region
As the world’s largest democracy, India has fascinating people and culture which have paved a way for burgeoning economic success, although it is currently battling with inflationary problems. As India enters an era of a weakening global economy, its continued growth remains to be seen. Also, corruption scandals such as the 2G Telecom licenses sales and those surrounding the recent Commonwealth Games have drained precious government resources.
India’s main economic drivers continue to be IT services, software development and electronics manufacturing. They have been growing at a CAGR of 22.8%, 56.3% and 21% respectively over the past 3 years. This is despite the fact that it has been battling inflation and has much room for the improvement of its infrastructure.
Currently, India has to overcome its battle with high rates of inflation. However, its strengths in the medium term include having a young population, and as a result, a low dependency ratio. This will undoubtedly result in a fresher, more energetic and vibrant economic landscape that is no longer burdened by the practices of their forefathers. New ideas in a growing country await.